Family photo of the BRICS-UNASUR Summit in Brasilia
Even before the BRICS-UNASUR Summit in Brasilia, on July 16, 2014 momentum was growing because of the huge energy deals announced between Russia and China and those already negotiated between Russia and India but yet to be announced. In each case the parties made the point quite clear publicly that these deals would not be transacted in U.S. dollars. With each passing meeting and announcement it becomes more evident that BRICS is morphing into anti anti-dollar, anti-IMF/World Bank alliance.
Recently BRICS officials announced that all currency swaps between the BRICS central banks, which will facilitate trade financing, will completely bypass the U.S. dollar. At the same time, the new system will also act as a de facto replacement of the IMF, because it will allow the members of the alliance to direct resources to finance the weaker countries. It seems that BRICS chose the all-in-one approach for establishing its anti-dollar alliance.
Even more important for non-BRICS members, on 15 July 2014, the first day of the BRICS 6th summit in Fortaleza, Brazil, the group [Brazil, Russia, India, China and South Africa] of emerging economies signed the long-anticipated document to create the $100 billion BRICS Development Bank and a reserve currency pool worth over another $100 billion. Documents on cooperation between BRICS export credit agencies and an agreement of cooperation on innovation were also inked.
These agreements were watched with glee by the UNSAR alliance of South American countries, especially Argentina, who i predict will be BRICS' first customer. After Argentina's 'default' today [more on this in the next Mud Report] BRICS will now invest heavily in Argentina, China itself will, like Chavez did 12 years ago, buy up the outstanding bonds at junk rates [with a tiny portion of their fiat US currency holdings] then, following Chavez lead, China will barter and otherwise help Argentina and Kirshner to succeed and re-sell the Argentine bonds a few years later when Argentina's real wealth again floats to the top.
According to Wikipedia, "If the current trend continues, soon the dollar will be abandoned by most of the significant global economies. Washington's bullying will make even former American allies choose the anti-dollar alliance instead of the existing U.S. dollar-based system." Adding that recently "Indonesia and Turkey have been mentioned as candidates for full membership of the BRICS, while Argentina, Egypt, Iran, Nigeria and Syria have expressed interest in joining BRICS."
Vladimir Putin and Angela Merkel share a laugh as they discuss the fate of the U.S. dollar
According to a new report prepared by the Russian Ministry Of Foreign Affairs (MoFA) circulating in the Kremlin the last couple of days, Germany’s Federal Foreign Office (FFO) contacted Moscow this week requesting an accelerated membership course for their joining the BRICS economic community as they plan to leave the European Union (EU), a move Russian experts said would “spell doom” for U.S. dollar hegemony.
According to this report, Germany became “alarmed” this past week after the Obama regime ordered the EU to “ignore and not comment on” the evidence provided by Russia relating to the Malaysian Airlines 17 flight shot down over Ukraine proving it was a “deliberate action” ordered by Kiev officials with CIA involvement. German intelligence sources, this report continues, confirm that the Obama regimes case using YouTube videos and Tweets to blame Russia is “unraveling like a cheap sweater” under the increasing realization that dubious social media-sourced evidence is essentially all there is.
Germany has a vital interest in ensuring their relations with Russia and China are not hindered in any way, especially since they rely upon these BRICS member nations for 30% of their oil imports, and 40% of their natural gas needs. Additionally, over 3000 German companies do a great deal of business with the BRICS coalition, and their economy is now more reliant upon the East than it is on the U.S. and Western countries. [relevant articles here, here, here and here].
Apparently Germany has already seen the writing on the wall for a sea-change in global economic power, and it is very likely that the linchpin to Europe and the entire European Union will look out for itself, and move forward in a partnership with the next power structure that will rule the global financial system - BRICS+G.
Of course, none of this has been confirmed by either Germany or Russia, if it were it wouldn't be a rumor it'd be the #1 story on every news outlet around the globe. And as my 'research department' warns me most of of these articles come from sources that are known for their "wild admonishments to buy gold or silver or ?" so may have a stake in seeing the U.S. dollar plummet. They also warn me that most likely the original source of this is a leak by Frau Merkel or her subordinates as a way to get the U.S. to back-off with their demands of more and more sanctions against Russia because Merkel understands that if Putin is pushed to far it'll very cold in Germany next winter but the U.S. won't suffer one iota.
So it's a rumor...but it's a rumor that 'makes me feel like dancin'. Imagine what a sweet feeling it would be to see the Empire and it's profiteering capitalist vultures circling the drain instead of constantly seeing them undermining the web of life that supports us all.